You obviously heard of what Robinhood did today in regard to stopping/mitigating mass losses to their billionaire buddies.
What the banks did back in 08', to cover their own asses, was to delay Standard & Poor's ratings on the housing market, among other nefarious ways. They did this to buy up the same exact bonds they created for the few people who had bought the shorts on the housing market.
They sold these bonds thinking these buyers were crazy.
Until the housing market did start collapsing.
They were forced to manipulate the market to get their skin in the game.
The Michael Burray scene from The Big Short is Iconic!
All of a sudden, the ratings are changed, banks have collapsed, there is blood in the streets, and now the banks are willing to pay out on their bonds.....after they've already made a position in the market, to cover their asses.
Fast forward 13 years, and a trading company, which is entangled with many big $ firms, freezes people's buying capabilities when their big $ firms are on the hook for tremendous losses.
The BIG guys got greedy, and leveraged themselves to epic proportions.
This could never go bad!
The little guy should have won here.
But yet, again, the BIG guys got their way.
This is worse because there was nothing behind the scenes here. The writing is literally on the wall, regardless of how nicely it's written.
I can at least fortunately say, that maybe, just maybe, there will some minor justice in this case. I'd hope for major justice....but I wouldn't hold my breath.
"The man who sees the future, will be dismayed at it, when the PTB don't allow it to happen."
Robin Hood has completely destroyed any chance it has at doing business by completely alienating the entire community.
There will still be willing participant, believe it or not, but that's on them.
I've never dealt with them, but definitely will not ever be doing so now.
Honestly enough after this entire situation hit the news there is no way there is going to be any further supporters
After a game, Robinhood investors would be able to sell only their positions and not open new ones
I am on the edge of pulling my stuff out of Robinhood at this point. I used to really like them, but not I am not really sure how I feel about them. This was a really bad move on their part.
I would have pulled out everything by now if it were me. How can you trust them at all after something like this?
Who's to say they won't do it again?
Just another peg in the board proving that centralization is the enemy.
For sure. I am looking at making some moves. I know my brother in law moved most of his stuff out, but what are the options. Most other platforms are centralized as well! Buy the stock certificates and hold them in a safe? :)
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Honestly man, idk. This is one of the big reasons I avoid the stock market. Anytime you're dealing with a centralized entity, you're playing with fire, imo. This specific centralized entity, the stock market, is ripe with insider trading, politicians getting info about things before the public and then selling shares like crazy, and also massive billion dollar firms moving the goal posts whenever it is they who are at a potential to lose. I don't like playing games in that arena, the deck is stacked against me from the get go.
Now, unlike crypto, decentralized crypto, to be specific, is a much more fair game. Everybody knows the rules and they never (or rarely, if voted by consensus in certain situations, but still known at the beginning) change. Only real possible way of manipulation is the pump and dump, and that is extremely risky...but again, we all know the rules and possibilities beforehand. This is an arena I feel I can play in.
The Shit Show is indeed fun to watch... !popcorn
"I am Taking my ball and now here are the new rules"
Like, for real. Imagine watching an NFL game and the refs decide one team gets 5 downs. It's like, that's not how this works!.
But then again, clearly, it is how it works when it comes to the stock market.